Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the tables below and Exhibit 1-A, Exhibit 1-B, Exhibit 1-C, Exhibit 1-D to calculate the balances of the information provided below. Assume that the

image text in transcribed

Use the tables below and Exhibit 1-A, Exhibit 1-B, Exhibit 1-C, Exhibit 1-D to calculate the balances of the information provided below. Assume that the time period for each scenario is 5 years, and the Interest rate is 4%. A. Jamie Lee needs to save a total of $7,000 in order to get started in her cupcake caf venture. She is presently depositing $1,750 a year in a regular savings account. Calculate the future value of these deposits. times Future value of annuity factor Future Value of a Series Current amount of Deposits equals Future value amount $ 0.00 B. Assuming that she leaves her emergency fund of $1,400 untouched, how much will her emergency fund be worth? Regular deposit amount Future Value of a Single Amount times Future value factor equals Future value amount $ 0.00 C. What if Jamie Lee had a relative that could give her money now that she could Invest? What is the minimum amount she would need now to ensure that she had $7,000 when she wanted to open the cupcake caf? Future amount desired times Present Value of a Single Amount Present value factor equals Present value amount $ 0.00 D. As Jamie Lee is planning ahead for operating the cupcake caf, she calculates that she will need $28,000 per year in salary. What is the value of five years of salary when the cupcake caf opens? (Assume that she will take the salary as a one-time payment each year.) Regular amount to be withdrawn times Present Value of a Series of Deposits Present value of annuity factor equals Present value amount $ 0.00

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Secured Finance Transactions

Authors: Dominic RM Griffiths

2nd Edition

1787425142, 978-1787425149

More Books

Students also viewed these Finance questions

Question

key aspects of managing the supply chain.

Answered: 1 week ago